Small business and general business tax break

What does 'used for the principal purpose of carrying on a business in Australia' mean?

This means that at the first time you started to use the asset or had it installed ready for use, it was reasonable to conclude that the asset was used principally in Australia for the principal purpose of carrying on a business. An asset does not necessarily have to be located in Australia at its first use time. However, the purpose test will not be satisfied if it is reasonable to conclude that it will never be used in Australia.

For more information, see What is a recognised new investment amount? under the heading 'Was the purpose test satisfied?'.

Sections within Using or installing assets

• What do 'use' and 'installed ready for use' actually mean?
• When does the asset need to be used?
• What happens if I don't purchase, use or install on time?
• What happens if I have to return the asset?
• What if I buy and then sell the asset?
• What does 'used for the principal purpose of carrying on a business in Australia' mean?